Palestinian Minister of Finance Mohammad Zuhdi Al Nashashibi has said that the Palestinian National Authority (PNA) will formulate plans to overcome the economic burdens and damage caused by the “continuous Israeli aggression which cost the Palestinian economy 1.5 billion dollars.” In a telephone interview with Albawaba.com, Nashashibi said that this loss is mounting up daily, and so the PNA has to study how it can make use of the Arab aid and potential for financing the remedial plans.
Nashashibi said that there are two Arab funds: the first is called Al Aqsa Fund which has been allocated $800m for financing projects intended to preserve the Arab identity of Jerusalem and ensure that it is not abolished, and to enable the Palestinian people to free themselves from being tied to the Israeli economy.
“This means that any project we present in any sector that takes us away from dependence on Israel will be eligible for discussion. The fund is also intended for the support of the families of the Intifada martyrs and facilitating their education and welfare. A detailed program for such activities will be prepared,” he said.
Responding to a question as to whether the amounts allocated for both funds are sufficient to cope with the losses incurred by the stoppage of work, and the devastation that resulted from daily Israeli aggression, Nashashibi said “the Palestinian Authority does not want to appear as if it is dictating certain figures. We would like to explain to our Arab brothers the magnitude of the problem, and leave it for them to estimate what they can contribute to our help us cope with the heavy burdens on our economy.”
The Palestinian Minister indicated the need for opening the Arab labor markets for the Palestinian workers and said, “since the conference of the Arab foreign ministers, which was held in preparation for the Arab Summit, we have been insisting on opening the Arab work markets for the Palestinian workers in order to help us deal with the current entangling crises which is the result of Israel prohibiting the export of goods from the West Bank and Gaza.”
Nashashibi added that “there are comments and criticism of this idea and there are some people who say that it would be preferable for us to have our domestic development projects in West Bank and Gaza that would absorb this surplus manpower through a supporting fund provided by the Arab countries. But this problem cannot be solved in one month or two.” So we have to start with opening the labor markets temporarily until the large numbers of workers, amounting to 125,000, who have been out of work due to territories closure are absorbed. Losses in the work sector are immense, and I would appeal now for the opportunity of work for 20,000 workers. Today, I held talks with our brothers in Egypt and UNDP in an attempt to create work opportunities in our territories, but this huge number cannot be coped with in a very short time”.
Regarding the financial position of the Palestinian Authority, Nashashibi said that the PNA revenues have declined, and Israel has constrained 260 million shekels due for the Palestinian administration.
“We have approached the EU, which promised to transfer to us the specified fund balance to confront such circumstances. We have signed an agreement with the EU that in the event Israel freezes the Palestinian appropriations, the Fund will reimburse the expected amounts and wait until appropriations are transferred by Israel for the settlement. This has been an established procedure with the EU and we revert to in times of need like this,” the minister added.
Nashshibi denied a report that the Palestinian Authority has borrowed US$ 100 millions from the Arab Bank for the purpose of paying the employees’ salaries.
“This is untrue. It is true that the Arab Bank is always ready to offer help, but we have not requested to borrow US$ 100 millions at all,” he said.
Palestinian Minister of Industry and Trade, Sadi Krunz had told Albawaba.com that due to the money shortage the PNA suffers, a loan was given by the Arab Bank.
The Minister indicated that the donating countries fulfill one quarter of their commitments.
Regarding the mechanism of collecting donations throughout the Arab World, Nashashibi said, “we have opened accounts with all the Arab Bank branches throughout the world such as London, Paris, New York, Frankfurt, Rome, Berlin, Spain, Cyprus, and Greece for the donors to deposit their donations in.
The Minister added that the Palestinian Authority is capable of controlling the process of money collection, adding that it will ask all parties, who have received donations to submit a written financial report regarding the money they have spent.
Regarding the availability of national donations throughout the world, which would help the Palestinian people, the Palestinian Minister said, “so far, we have no final figure because these donations are spread across many sites, but when these are collected, they will be spent according to the will of the donors and their conditions.
“We have two basic problems and the rest of the problems can be solved step by step. One of the two problems is to provide the minimum living requirements for 250,000 workers”.
Regarding the Congress implication that it will cut the American aid provided for the Palestinian Authority, Nashashibi said,”what aid? It is basically not identified. It is not worth of taking interest in it or even cutting it.. It is the US$ 750 millions, which they are threatening to cut. They say that there are conditions. But I believe that the American Administration has refused all the congress proposals and insists on the transfer of the amounts”.
© 2000 Al Bawaba (www.albawaba.com)
